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TRANSCRIPT
Presented by:
John Bermudez
Vice President
Product Management
Innovation in Supply Chain Execution
© 2016 MHI® Copyright claimed for audiovisual works and sound recordings of seminar sessions. All rights reserved.
Topics
The transformation to supply chain management across a global network
Introducing social collaboration into supply chain management to improve customer responsiveness
Internet of things technology in supply chain execution systems
Introduction Introduction
John Bermudez
Vice President, Product Management
• SCP, SCE, PLM, CPQ, EAM & CRM
• Former AMR (now Gartner) Analyst & SVP
• Originated APS/SCP research
• Co-founder Supply Chain Council
• Former Head of Strategy for Oracle Supply
Chain Planning
• Former SVP Product Management for
Demantra
73,000 customers globally
3rd largest business applications
company
200+ countries & territories
14,000 employees
2.8B revenue
$100B trade in commerce
cloud
25,000 suppliers in
commerce cloud
30 banks in
commerce cloud
1,248+ go lives
Infor at a glance
4,500+ cloud customers
globally
5 Copyright © 2015. Infor. All Rights Reserved.
www.infor.com Infor Confidential
Global Supply Chain
Networks
The Supply Chain Challenge: Reliably and profitably fulfilling volatile global demand
•
Manufacturing
Customers
outbound
Volatile Demand
inbound
Suppliers Outsourced
Manufacturing
Global Supply
Tier-1 Tier-n
Multi-tier Constraints
Customers… anywhere, anytime, anything
Execution Across Global Supply
Chain is Critical
Companies that can’t orchestrate lack the agility,
responsiveness, efficiency and intelligence to SURVIVE and WIN
in their markets
The State of the Market
4%
19%
33%
53%
79%
79%
79%
Don't Know
Business Netw./Hub
ERP + VANS
Enterprise Web…
Spreadsheets
Phone, Email, Fax
EDI
SELLERS BUYERS
LOGISTICS
PROVIDERS FINANCIAL
INSTITUTIONS
Disconnected, incomplete point
solutions with no visibility
Highly manual, error-prone
and slow processes
EXCEL / WORD EMAIL
FAX MAIL
Information is the “Achilles Heel” of
Global Supply Chain Management
The Enterprise
Logistics Services Providers
Suppliers Customers
The Enterprise-Centric View
Expanding the “Zone of Central
Influence”
The Enterprise
Logistics Services Providers
Suppliers Customers
Single Version of the Truth
Cloud Supply Chain Networks
Impact of partners and inter-company commerce
The Enterprise
Network Cloud
Single Instance
Multi Tenant
Networked
Partners
Evolution
On-Premise
Dedicated Instance
Corporate IT
Point-to-point EDI
Private Cloud
Dedicated Instance
ASP/Hosted Software
Partner web portal
Public Cloud
Single Instance
Multi Tenant
Partitioned groups
Lots of Different Specialized
Networks
Global Manufacturer Network
Apparel Retailer Network Network of Networks
A Network of Networks Creates the
Global Supply Chain Network
Corporate Enterprise
Supplier
Logistics Service Provider
Global Carrier
Key
GT Nexus Commerce Network
Global Supply Chain Orchestration
Enterprise
Suppliers Channels/Customers Manufacturing Distribution
Plant 1
Contract
Manufacturer Far-
Source
Near-
Source
JIT
DC
DC
Global
LSP
Local
Plant 2
3rd Party
Distributor
Logistics
Working Capital Optimization
Assurance of Supply Profitable Demand Fulfillment
Global Transportation Management
Supply Chain Networks Create
Value for Global Manufacturer
Supply Sources
Spare Parts
Dealers, Customers
Parts
Plants Purchase Orders Sales Orders
PROFILE NETWORK CAPABILITIES RESULTS & VALUE
Inbound and Outbound
12,000 Dealers, 147 countries
Ocean, Air, Rail, Truck carriers
5 3PLs, 2 Brokers
Visibility to parts, components and finished vehicles
Modeling, Exceptions and Alerts
Air, Ocean, Truck TMS
Shipment Planning
Business Intelligence
Removed 3 days inventory from supply chain = $150M
Reduced transportation costs by $150M
Central global supply chain operating platform for Caterpillar
Helped Mfg keep supply chain unaffected by 2011 Japan Earthquake
Global Equipment Manufacturer
Social Collaboration Drives Responsiveness
Social Collaboration
Drives Responsiveness
Process in an enterprises…
in an enterprise …
FLEXIBLE PROCESSES
(e.g. workflow)
STRUCTURED PROCESSES (e.g. ERP)
approvals
PROCUREMENT
Unstructured processes allow
employees to contribute their
expertise as required
UNSTRUCTURED
PROCESSES (e.g. conversation, email,
chats, etc.)
FLEXIBLE
PROCESSES (e.g. workflow)
STRUCTURED
PROCESSES (e.g. ERP)
experts
experts
phone
experts
chat
approvals
PROCUREMENT
Successful operations requires collaboration
across functional silos
Dem
and
Sup
ply
Fin
anci
als
Pro
du
ct d
evel
op
men
t
Inve
nto
ry
Logi
stic
s
…
Horizontal collaboration across departments
Ver
tica
l co
llab
ora
tio
n a
cro
ss
fun
ctio
ns
Customers
Suppliers
Partners
Stakeholders
Logistics
‘Structured’ Collaboration provided ERP and CRM applications
Encourage responsive decision
making
Phone conversations Emails Instant Messaging Face to face conversations Meetings
Stakeholders….
Production department
Finance department
Inventory Logistics department
Customers
Suppliers
VP Sales
Product Development
• Unstructured collaboration
makes ERP responsive • Need to capture, track,
audit discussions & decisions
• Extend to the supply chain network
Unstructured Collaboration
Social networking will improve
execution against business strategy
• Interactive collaboration across the organization ensures
better understanding of the business strategy and how to
respond to bumps along the way
• Social collaboration ensures all necessary parties are
included in to contribute their specific expertise
Channels: All
Products: All
Metric: revenue, margin, cash
Time: fiscal month
VP Finance
Channel: Customer ‘A’
Product: Family & SKU
Metric: Forecast, Target, Actual Sales
Time: Weeks & Months
Sales Rep
Channels: All By Region
Products: Product families for Brand ‘X’
Metrics: forecasts, revenue
Time: Cal Months
Brand Manager
VP Operations
Channels: Plants & DCs
Products: All
Metric: service level, capacities, costs
Time: Weeks & Months
Channels: All
Products: All
Metric: revenue, margin, strategy adherence
Time: quarters
CEO
Plant Manager
Channels: Plant ‘Z’
Products: All
Metrics: Capacities, Overtime, Costs,
Utilization
Time: Days, Weeks
Channels: All Customers with Sub Region “Central US”
Product: All product families, forecasts, targets
Metrics: Forecast, Target, Actual Sales, MAPE
Time: Weeks & Months
Regional Demand Manager
Create your own supply chain superstars through mentorship
What Collaboration Looks Like
Social Supply Chain Network
People across company boundaries manage supply chains!
Alert!
Ocean Shipping
Supplier
Manufacturing
Air Freight
Social business enables virtual
mentorship • Think about what you learn collaborating with others online!
• Social networking enables more experienced manufacturing
experts to share their knowledge around the world
• Private social networking improves the quality and applicability of
what new supply chain employees learn
• Private social networking improves the quality and applicability of
what new supply chain employees learn
Internet of Things
Innovations
in Supply Chain Execution
Internet of Things
33 Billion connected devices by 2020
IoT versus Internet of Everything
• IoT strategy needs to be more than gathering data from
sensors
• IoT includes all types of devices from machines to
weareables
• Opportunities in SCE/WMS will be in the automation of
a processes and weareables
IOT Use Cases in WMS/SCE
• End-to-end global supply chain visibility
• Augmented reality
• Automated pallet receiving
• Temperature control and audit
• Smart packages
• Automation integration
• Automated serial number tracking
• Employee safety
• Warehouse control system
IoT Requires Supply Chain Context
and Analytics
IoT “live” Data
Transport asset GPS
Carrier data/ETA
News / Social media
Traffic
Weather / Natural Disaster
Predictive Analytics
ETA prediction
Network geo-fencing
Impact analysis
Sensitivity analysis
What-if scenarios
Supply Chain Context
What am I buying?
How much?
Who is making it, where?
How much inventory?
How much is shipping?
Who is the carrier?
Trailer, flight, vessel ID?
When does it need to arrive?
Partner Legacy Systems
Event Data
Orders
Shipments
Milestones Receipts Invoices ……..
Supplier Customer
DC Port
Airport
CFS
Port
Airport
IoT Event-based Supply Chain
Visibility
IoT Data
Weather Disasters Unrest Vessel/Vehicle Locations
Flight Status
Traffic Conditions …
Data Enrichment
Foundation
Applications Add Business Context
to IoT Data
Supplier Customer
DC Port
Airport
CFS Port
Airport
Container/Ship
Air Transport
Rail
Port Data
Risk Analysis
Truck Supplier Factory
Partner Legacy Systems
Event Data
Orders
Shipments
Milestones Receipts Invoices ……..
“Live” IoT Data
Weather Disasters Unrest Vessel/Vehicle Locations
Flight Status
Traffic Conditions …
Data Enrichment
Foundation
What Does the Data Mean?
Application must link the “Internet Of Things” data with transactions and provide
contextual intersection of structured and unstructured data.
Current vessel location
Planned vessel Location
Applying to Improve Over the Road
Shipping
GPS Data
GPS Signals
Context App
EDI 856 EDI 214 EDI 210
In Development Early Adopter Start Q2-2016
Context Data
• Orders, suppliers, customers, items, value, deliver-by dates, inventory
• Shipments, transport plans, planned pickup/dropoff/stop locations
IoT Data
• Truck GPS data
Functionality:
• Real-time location of each shipment
• Remaining drive-time and live ETA to dropoff location
• Geo fencing (distance to location)
Use Cases:
• Improved predictability of arrival/customer service
• Validating POD and carrier performance
• Notify when shipments enter defined zones
Smarter Use of Devices Improves
Tracking
Supply Chain Visibility & Analytics
Mobile App w/ shipment GPS
Shipment data w/ truck GPS
Driver mobile
Driver Mobility
Mobility for Owner-operators
TMW McLeod
Fleetwise Roadnet
…
truck GPS
Mobile GPS
1 2 3 4
Device (on goods)
Device (on trailer)
GPS device-based Cargo Tracking Solutions
Freightwatch Savi / SGS
Macropoint Transvoyant
GPSit Reltronics
Iqgistics …
Shipment data w/ truck GPS
Device GPS
Smart Devices
On-board telemetry
Vehicle Telematics
Fleet Management Systems
Omitracs
Fleetmatics
Teletrac
…
Shipment data w/ truck GPS
Truck GPS
Analytic App
Smarter Use of Devices Improves Tracking
Supply Chain Visibility & Analytics
Mobile App w/ shipment GPS
Shipment data w/ truck GPS
Driver mobile
Driver Mobility
Mobility for Owner-operators
TMW McLeod
Fleetwise Roadnet
…
truck GPS
Mobile GPS
1 2 3 4
Device (on goods)
Device (on trailer)
GPS device-based Cargo Tracking Solutions
Freightwatch Savi / SGS
Macropoint Transvoyant
GPSit Reltronics
Iqgistics …
Shipment data w/ truck GPS
Device GPS
Smart Devices
On-board telemetry
Vehicle Telematics
Fleet Management Systems
Omitracs
Fleetmatics
Teletrac
…
Shipment data w/ truck GPS
Truck GPS
Analytic App
Continuous Real-time Shipment
View
IoT-Based Energy & sustainability
monitoring
Fully Integrated
Energy
Management
Energy Alerts
Energy Performance Management
Sustainability Tracking & Reporting
Alerts Peer
Evaluation
Continuous
Commission
Energy Star
Integration
Performance
Forecasting
Emission
Factors
Project
Tracking
Trend
Analysis
+
Energy consumption can take up to 60% of indirect operating and maintenance costs
Intelligent
Indicators
Early warnings on
asset condition
IOT sensors
Advance Ship Notice
Warehousing
Sales & Ops Planning
In Transit
Order Capture Demand Work in
Progress
Customs Delivery
Settlement
Customer Receipt
Production Scheduling
End-to-End Commerce Network
